Mike Randle, Editor

The Future of Life Sciences in the South Reminds Me of the Good Old Days of Economic Development

I celebrated my 46th birthday on Halloween. I'm getting old. If I can remember the "good old days" of economic development in the South, I must be getting old. Those were the days (doesn't that sound like an old dude?). Those were the days when competition from states in the Northeast, Midwest and West was, for all practical purposes, non-existent. General manufacturers left those regions in droves and settled in lower-cost locations in the South in a sometimes desperate attempt at profitability. That was the 1970s and 1980s. Today, those regions are more competitive. As competitive as the South? Not yet. They may never be. But the knowledge of turning deals is there and in some cases it's very strong.

Recently, I've spent a lot of time talking to Bob Goforth, the Jacksonville-based site consultant extraordinaire. Why? Lately, there's been plenty of economic development issues to discuss. The industry is in flux right now, as is its personnel, not unlike the economy as a whole.

Goforth has been in on many, many deals that landed in the South and elsewhere. I'm sure some execs reading this know Bob. Some of you have used his expertise during your site search. Bob remembers the good old days of economic development in the South, when sitting by the phone was the most effective way of practicing the business. If you weren't by the phone in those days, you might miss a deal. Voice mail didn't exist.

This edition, like no other in SB&D history, is almost totally dedicated to one industry: the life sciences. Talking to Goforth and knowing what I know now about the life sciences industry, reminded me of the good old days. The situation of that industry is this: a huge portion of the entire life sciences industry is headquartered in just three U.S. states. Those are California, Massachusetts and New York. Which U.S. states are the most expensive to operate a business? The answer is California, Massachusetts and New York.

The life sciences industry is expanding. The life sciences industry is ripe with cash. Apparently venture capital has helped the industry's cause by pulling out of information technology and finding a home in biotech. If that is indeed the case and this industry is all it's made out to be, then the attraction of the South to decisionmakers of the life sciences sector may bring back visions of the good old days.

If you are a decisionmaker in a life sciences company, look to the South when it's prudent to expand. It's likely that you are running your company in the most expensive business environment in this country. We have what you need when you decide to expand and it cost much less than expanding at your current location.

Several years ago I was interviewed by a reporter of a newspaper (I've forgotten the title) and he asked why communities in the South were "positioning themselves for biotech?" My answer was that I didn't know. Biotech deals weren't even on my radar screen and all of the life science deals I was hearing about were all being done in Maryland and parts of Texas. Now, with what I know regarding what the South offers to such an exciting industry, I realize why those communities and states made the investments to lure biotech companies. They knew it might be like the good old days.